Solutions Manual to accompany Accounting 9e by Hoggett et al
Full file at https://testbankuniv.eu/Accounting-9th-Edition-Hoggett-Solutions-Manual B.
In his article, Pickering is addressing four research questions that explore: 1. How does the performance of partnerships compare with that of publicly listed accounting firms? Some past studies about performance of different forms of ownership of large consulting firms and advertising firms suggest that publicly listed company is a less efficient form of ownership for PSFs compared to partnership. However, there is limited research in investigating why PSFs are moving into less efficient ownership form, mainly due to inconsistent proxy measures of performance. 2. Do proxy measures of performance reflect the underlying performance of accounting firms? In comparing performance between different ownership forms, prior studies commonly used proxies of performance (mainly revenue) sourced from industry publications’ ranking reports as private firms (including partnerships) do not usually release their financial results to public. The question arises of whether the proxies used reflect the underlying performance for different ownership forms, as different ownership form may have different cost structure and this may be overlooked in calculating the proxies. 3. Do budgeted revenue numbers reported in the published industry surveys reflect actual revenues achieved? Revenue is the main proxy used in comparative analysis between different ownership forms. As mentioned above, it is common for researchers to use revenue figures from published industry surveys to do the analysis. Since there might be different ways in reporting what is included in a firm’s revenue, Pickering’s study attempts to explore the quality of published industry survey data to determine if the revenue published by industry survey is consistent with the actual revenue earned. 4. Are consistent measures and calculations of measures are used across the period of BRW Top 100 surveys? There might be errors and inconsistencies in the published industry data, such as BRW surveys. Industry surveys may not report the methods used in calculating data, and therefore care is required in using industry survey data and in making sure that the methods used in calculating the data is consistent throughout periods. C. To compare performance across ownership form (i.e. between partnerships and publicly listed accounting firms), Pickering used to proxy measures, namely revenue growth and revenue per person (including partners and all staff), which is a productivity related measure. Revenue per person is calculated by dividing annual revenues by reported year-end number of staff. The revenue growth (from year 1999 to 2005) and revenue per person (from year 2000 to 2005) of two Australian publicly listed accounting companies (i.e. WHK Group and Stockford Limited) and 10 mid-tier partnerships were then compared. In exploring the validity of proxy measures (i.e. whether proxy measures of performance reflect the underlying performance of accounting firms), Pickering compared performance of the two publicly listed accounting firms (as discussed above) as measured by publicly available proxy measures (i.e. revenue growth and revenue per person) to the underlying performance from the firms’ financial reports for the year ended 30 June 2002. He also
© John Wiley & Sons Australia, Ltd 2015
Full file at https://testbankuniv.eu/Accounting-9th-Edition-Hoggett-Solutions-Manual
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